About Photronics

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially.  Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

Non-GAAP Financial Measures

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

		Nine Months Ended
		August 3,				July 28,
		2025				2024
Cash flows from operating activities:
Net income		$	111,613			$	143,623
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization			59,234				61,613
Share-based compensation			10,003				9,841
Changes in operating assets, liabilities and other			(20,876	)			(22,003	)
Net cash provided by operating activities			159,974				193,074
Cash flows from investing activities:
Purchases of property, plant and equipment			(120,588	)			(87,733	)
Purchases of short-term investments			(96,571	)			(100,558	)
Proceeds from maturities of short-term investments			42,148				44,696
Government incentives			1,469				1,541
Other			(57	)			(4	)
Net cash used in investing activities			(173,599	)			(142,058	)
Cash flows from financing activities:
Repayments of debt			(17,969	)			(4,500	)
Common stock repurchases			(97,422	)			-
Proceeds from share-based arrangements			2,120				1,074
Net settlements of restricted stock awards			(2,013	)			(3,002	)
Net cash used in financing activities			(115,284	)			(6,428	)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash			10,129				(6,454	)
Net (decrease) increase in cash, cash equivalents, and restricted cash			(118,780	)			38,134
Cash, cash equivalents, and restricted cash, beginning of period			601,243				501,867
Cash, cash equivalents, and restricted cash, end of period		$	482,463			$	540,001

		Three Months ended
		August 3,				May 4,				July 28,
		2025				2025				2024
GAAP Net income attributable to Photronics, Inc. shareholders		$	22,891			$	8,861			$	34,388
FX (gain) loss			14,258				31,111				(4,068	)
Estimated tax effects of FX (gain) loss			(3,663	)			(8,337	)			914
Estimated noncontrolling interest effects of above			(4,130	)			(7,376	)			681
Non-GAAP Net income attributable to Photronics, Inc. shareholders		$	29,356			$	24,259			$	31,915
Weighted-average number of common shares outstanding - Diluted			58,068				60,974				62,414
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders		$	0.39			$	0.15			$	0.55
Effects of non-GAAP adjustments above			0.12				0.25				(0.04	)
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders		$	0.51			$	0.40			$	0.51